Trace Makes Life Tough For US Junk Traders

AUTHOR(S)

French, Jeff

PUB. DATE

November 2005

SOURCE

Investment Dealers' Digest;11/7/2005, Vol. 71 Issue 42, p4

SOURCE TYPE

Trade Publication

DOC. TYPE

Article

ABSTRACT

The article explains that Trace, the National Association of Securities Dealers' (NASD) bond price reporting and dissemination system, has made it more difficult for investment dealers, particularly marginal players, in the U.S. to profit from the trading of high-yield bonds. This is because NASD limits markups and markdowns to five percent or less, and that they should be marked lower in most cases.

ACCESSION #

18784777

Related Articles

The article reports on the performance of the high yield bond market in the U.S. as of April 2008. According to KDP Investment Advisors Inc., the first half of April was characterized by new bond issuance that are priced low. Andrew Feltus of Pioneer Global High Yield Fund commented that new...

Reports on the launching of the Trade Reporting and Compliance Engine system by the National Association of Securities Dealers in an effort to make the corporate bond market as transparent as the stock market in the U.S. Means of leveling the playing field for bond investors; Increase in price...

The article reports that the restaurant chain operator Landry's Restaurants issued 295.5 million U.S. dollars in 14 percent senior secured notes due 2011 underwritten by Jefferies. It is noted that the company will net 260 U.S. dollars after the discount. According to KDP Investment Advisors'...

The article presents news related to the high yield market. It is reported that, at the end of September 2005, the U.S. bond market's concentration of investment grade bonds fell below 80%. Meanwhile, the concentration of speculative grade issuers reached nearly 21%, which is the highest level...

The article focuses on the market performance of Catalina Marketing Corp. in the U.S. Catalina generates the coupons that cash registers print out for customers at the supermarket. According to Fitch Ratings' forward high yield calendar, the firm would price $760 million in a term loan and...

The article presents an analysis on the continuous increases of the bargain basement prices in the U.S. bond market. Report says, investors are pointing out on the unpriced high yield bonds which are supposed to be in the particular spot of the previous credit cycles. Moreover, Martin S. Fridson...

The article focuses on a forecast by JPMorgan analysts that the default rate for high yield bonds will increase as high as 9% in 2009 and drop to 7% in 2010. JPMorgan forecasted that defaults will peak at 12% by the end of 2009 and drop to 10% in 2010 before the rally in the high yield bond...